Grayscale Files for Covered Call ETF Following SEC's Bitcoin ETF Approval

Grayscale Investments is wasting no time capitalizing on its recent success with the Securities and Exchange Commission's (SEC) approval of its spot bitcoin ETF.

The investment giant filed for a covered call ETF, named the Grayscale Bitcoin Trust Covered Call ETF, aiming to generate income from its position in GBTC.

According to the filed Form N-1A on Thursday afternoon, the new ETF aims to deliver current income while allowing participation in the price return of Grayscale Bitcoin Trust (GBTC). It's noteworthy that the fund will not directly invest in digital assets, as outlined in the filing.

Nate Geraci, President of The ETF Store, expressed his excitement about the development on X, saying, "And so it begins… Actively managed exposure to GBTC & buys/sells call & put options that use GBTC as a reference asset. Going to see all variations of spot bitcoin ETFs."

This strategic move comes mere hours after Grayscale's spot bitcoin ETF, GBTC, commenced trading, along with 10 other ETFs on Thursday morning. The combined trading volume for these products surpassed an impressive $4 billion in a short time.

As of 3:02 p.m. ET, Grayscale's ETF is leading the pack with over $1.9 billion in trading volume, according to data from Yahoo Finance compiled by The Block.

BlackRock and Fidelity's ETFs are not far behind, ranking second and third with $942 million and $628 million in trading, respectively.

It is worth noting that the SEC has approved 11 spot bitcoin ETFs on Wednesday, marking a watershed moment. SEC Chair Gary Gensler, who voted in favor of the products, highlighted the need to move forward, referencing a D.C. court decision from the summer that mandated a re-review of Grayscale's bid for a spot bitcoin ETF.